Graduating college or starting life in a mountain of debt is not something anyone wants, but is the unfortunate reality that many have to face. Debt can easily snowball and put people in difficult positions early on in their careers. Getting out of debt can be difficult and a long battle. Today, I’ll give you my plan to get out of debt.
Start with the end in mind
I’ve been chipping away at my debt by trying to understand the process better. By this, I mean that I understand that debt is not going to go away overnight, over a week, or even a year. This has led me to cultivate wise spending habits to save more so I can put more towards debt. I started with the total amount that I owe, and I broke that down into manageable size chunks. Each month I’ve set goals to save a certain amount of dollars. I look for different ways to save or work more so I can save more. Starting with the end in mind helps me understand what I need to do today, this week, and this month. Getting into a saving mentality or a frugal mindset has helped me make minor decisions which have snowballed to save me hundreds.
Starting with the end in mind also helps keep me motivated. Even though I’m spending, I still go out with friends on the weekends and let myself have some fun. When we go out for dinner, I may just get an appetizer or look for discounts online beforehand. Even though I’m staying frugal, I’m still staying human and staying sane. It’s easy to run out of motivation because we inherently want to go out and do fun things. I’m here to tell you that you can keep saving while going out and having fun. Look for cheap restaurants to go to with friends, discounts, or thrift shops around. These small decisions have saved me much more than I anticipated when I started saving to get out of debt. Try to picture where you want to be financially in the next few years, and let that goal influence your actions financially on a weekly and daily basis.
Chip away little by little
When I first started saving to get out of debt, I tried to save massive amounts of money. Sometimes I was successful at this, and other times not. Regardless of if it worked or not, I always felt drained. I wasn’t going out, I was eating cheap and low quality foods, and I wasn’t the person that I wanted to be. The problem was I was letting my debt control me. I decided that I was going to still enjoy my 20s, but save along the way. Chipping away little by little helps me to stay motivated and avoid burnout. Staying motivated and avoiding burnout are crucial to getting out of debt because it’s such a long term game. As you try to get out of your debt, look for small ways to save $5 or $10 along the way. Many times for me this is buying necessities rather than wants.
Chipping away little by little also means being wise with the things that you buy and eliminating expenses. If you’re smart, you can get more out of the products you buy – from electronics to food to furniture. I noticed that I was spending way too much on groceries, so I shifted the things that I eat. I started eating smaller, more frequent meals throughout the day. Even though it was cheaper, I still made sure that these were healthy meals overall. I tried to get more out of the calories I was intaking. I looked up studies on how to feel full while eating less, and to my surprise, many of the takeaways from these studies have worked for me. As a result, I feel more full, have more energy, and spend less on food each week and each month. Minor changes like this help me save more and let me hit my monthly and weekly financial goals.
Consider some side hustles
While saving is great, another great idea that has helped me is getting into some side hustles. I look for jobs that are fun, easy, and bring in some sort of income. For example, since I played high school sports I coach elementary and middle schoolers frequently. Sometimes it’s one on one sessions, and other times group sessions. It’s fun for me to interact with the kids, and also get a workout in. I’m able to bring in income while doing something that I really love. Additionally, I’ve always considered starting a dog walking business. While I’m yet to pull the trigger, I love animals and walking in the mornings help me start my day. While these ideas resonate the most with me, there likely are some ideas that work for you.
I try to look for side hustles that I enjoy, but there are some that aren’t as fun but still bring in some good cash. I’ve had friends that make good money doing uber, lyft, or doordash. Others have started tutoring certain subjects for high school or college students. You’d be really surprised at how much tutors can make, so if you’re an expert in math you can really roll in some dough. If you speak another language, becoming a tutor may be right for you. Some other ideas would be house sitting or dog sitting. These are super super easy ways to make cash. You get paid to live in someone else’s house, or spend time with their dog – how great is that? A quick google search will give plenty more ideas, but research around and see what would work best for you.
Conclusion
When you’re starting out trying to get out of debt, it can seem like a really daunting process. However, as you start with the end in mind, chip away at debt little by little, and start some side hustles, you’ll be on your way. Start today and look for ways to save or bring in some income. Your future self will thank you for it and you’ll be ahead on life.
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